Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being depreciated on a straight-line basis. In January 2020, Goliath Company determined that the equipment had a useful life of 8 years from the date of acquisition with no salvage value. What should be the carrying amount of the equipment as of December 31, 2020? A. P300,000 B. P500,000 C. P1,200,000 D. P1,800,000
Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being depreciated on a straight-line basis. In January 2020, Goliath Company determined that the equipment had a useful life of 8 years from the date of acquisition with no salvage value. What should be the carrying amount of the equipment as of December 31, 2020? A. P300,000 B. P500,000 C. P1,200,000 D. P1,800,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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Goliath Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of acquisition, the equipment had a life of 6 years with no salvage value. The equipment is being
A. P300,000
B. P500,000
C. P1,200,000
D. P1,800,000
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